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Finance – Common Money Dilemmas: How To Solve Them

Finance – Common Money Dilemmas: How To Solve Them

Some money problems are easy to solve. Like, if you’re carrying a balance on your credit card, you should aim to get rid of it.

But sometimes the answer isn’t as clear and we’re faced with a money dilemma. Two choices that seem equal, but aren’t. In other words, a money dilemma is when there’s a few ways to spend your cash, but it isn’t clear which one makes the most financial sense. Here are some of the most common money dilemmas.

Renovate or move

Growing families often wonder if it makes sense to renovate and stay or move to another home. By staying put you save money on moving costs, property transfer taxes, realtor fees and general cost of packing up a home. Staying also means you keep the friends and family and the community groups around you. But remaining in your current home means a huge renovation budget. On the other hand, if moving to a new home, means upgrading your area, it might make more sense. A better area, means easier access to transit, better schools, more amenities like libraries and community centres, grocery stores and hospitals. Solve this money dilemma by figuring out which decision will enrich your life more.

What debt to pay first

If (for example) you’re in both student debt and credit line debt the money dilemma is what to pay first. Solve this by knowing which loan is costing you the most. If you’re student debt is more expensive, see if you can consolidate your loans into one lower interest payment. This will simplify your installments and get your loans paid down faster. Solve this money dilemma by seeing which loan costs less.

Borrowing money

Home values in Canada have risen dramatically and many are lucky to have considerable equity in their home. If you want to tap that, the main choices are a secured line of credit or refinance. If you want to borrow a set amount right away, than refinancing will work out cheaper for you. But if you want to borrow in the future, but you don’t know how much, a secured line of credit is the best option. In this case, don’t be concerned with the lowest interest rate. Solve this money dilemma by figuring out the loan that will cost you less in interest payments overall.

Used or new car

It’s no secret that a new car loses value quickly. According to Edmunds, a consumer website for car seekers and owners, in the first year you lose 19 per cent of the value. There are also added fees, like delivery charges and higher taxes. But if you’re keeping that car for its life, so around 10 years, you will know the history of that car. For example the maintenance record. These are things you sometimes have to guess when buying a used car. Solve this money dilemma by first figuring out how long you want to keep the car.

Big annual holiday or a few shorter trips

In this case, you need to weigh your family and work life. For some families, going away any other time than the summer is not possible. So you save up all your holidays and take off for a few weeks then. For others, smaller trips off-season are easier and often cheaper. You may work for a company that has some obvious downtime. Solve this money dilemma by looking at your family’s schedules and see which option will serve you better.

A money dilemma is different than a money choice. We make financial choices every day, some good and some bad. A dilemma is when what you want to do costs the same, but you can’t figure out which makes most sense.

RUBINA AHMED-HAQ is the Finance Editor for HPG. You can read her musings in Condo Life and Active Life. She’s also the Family Finance Advisor for PC Financial. She regularly contributes on TV and radio including CBC Radio, CBC News Network and Global News Toronto. Follow her @alwaysavemoney

Last year, we experienced many significant changes with regards to qualifying for a mortgage. In addition, the Bank of Canada increased their overnight rate twice in 2017 for the first time since 2008. What does this mean for first-time homebuyers? A more difficult process to qualify for a mortgage, less purchasing power and more compromise.

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Aoyuan Property Group, a pioneer of mixed-use community developments in China, is now bringing their broad lifestyle intelligence to Toronto with the redevelopment of the 8.6-acre Newtonbrook Plaza site at Yonge Street and Finch Avenue.

With the current cost of real estate pricing so many young people out of the market, it’s becoming increasingly common for parents to help their kids by purchasing them their first condo. Especially when that child is heading off to school and will need a place to live.

Cosentino is a global, family-owned company that produces and distributes high value innovative surfaces for the world of architecture and design, leaders in their respective segments such as Silestone® Quartz surfaces and Dekton® Ultracompact surfaces. Technologically advanced surfaces that create unique designs for the home and public spaces.

Fusion Stone is an easy and budget-friendly way to beautifully upgrade your home, inside and out. A patented Shouldice innovation, Fusion Stone is a thin stone veneer that is easily installed with the included stainless steel clips & screws. You just screw it to the wall and it’s “Hooked for Life”.

Over the past 14 years Factory Tile Depot has become #1 for everything tile and stone. With 5 locations showcasing the latest and greatest trends in the tile industry, we have built the confidence of trade and retail clients alike. We are proud to offer well thought out showrooms, extensive selections of hard to find tile-stone, on site designers, and some of the best after care support in the industry. Experience the FTD difference on your next project.

Established in 1987, Caesarstone pioneered the original quartz surface and continues to be a leading developer and manufacturer of premium surfaces. Highly functional and design forward, Caesarstone surfaces have endless application possibilities including kitchen countertops, bathroom vanities, wall paneling, furniture and more.

X-Tile is sure to have whatever you need to express your unique individual style. We offer you an exceptional variety of wall and flooring options in ceramic, porcelain, natural stone, glass, mosaic and much more from leading suppliers around the world. Let our knowledgeable and friendly staff help you in your dream renovation or building project.

Since 1989 Men At Work has specialized in renewing and enlarging older houses in core Toronto neighbourhoods. We are experts in managing the challenges of renovating sensitive old buildings into beautiful, functional, comfortable living spaces.

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More than a kitchen and bath luxury showroom, The Water Closet offers unparalleled service, selection and solutions for all your plumbing and heating needs. Our goal is to be your full-service showroom while “Enhancing the Flow of Life”.

With over 90 years of experience, BLANCO is the leading kitchen sinks and faucets manufacturer. From handcrafted in Germany Steelart® sinks and the beauty of Silgranit®, to the European design faucets, BLANCO products are celebrated worldwide for their unmatched quality and design. Blanco Silgranit® sinks are proudly manufactured in Canada TRADE ONLY.

Euro-Line Appliances has brought elite European engineered appliances to Canadian homes for over 25 years. Our brands exceed expectations and have earned awards in design, engineering, performance, and energy efficiency. All of our cooking, refrigeration, dishwashers, and laundry appliances are created to conserve our non-renewable resources.

At Riobel we design, create and assemble faucets, shower systems and accessories in our Canadian facility located in St-Jérôme, a suburb of Montréal. Our modern and fashionable products are designed to fit all kitchens or bathrooms. They are easy to install, while mechanical parts are accessible from above the counter to facilitate cleaning and maintenance. Riobel: a benchmark of excellence since 1995!

Space Age Closets and Custom Cabinetry has been serving Toronto and the Greater Toronto Area for over 30 years. Our services include a wide array of custom storage solutions for every room in your home. With decades of experience designing and installing custom closets and cabinets we pledge to provide excellence in service and get the job done right the first time.

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Created by fusion of exceptional design, superior quartz quality and cutting-edge technology, HansStone Quartz weaves together intriguing patterns and colours inspired by the diverse Canadian landscape.

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Buying your child a condo for their college years provides a dual benefit: your offspring avoids having to pay rent when they’re at school (which you’d likely be bankrolling anyway), and the family then has a solid long-term investment for its portfolio, with the tremendous and ongoing upside as a rental property for other students down the line.

When it’s young people who will be condo’s occupants, the criteria for what constitutes an ideal unit changes than if you’re buying just for yourself. Perhaps most important on the must-have lists for students are locations that are well served by transit and close to quality post-secondary institutions.For example, Parkside, Amacon’s 23-building mega-project in Mississauga City Centre — the city’s largest condo development — has enjoyed unparalleled success with investors and end users thanks in large part to its proximity to Sheridan College. And a number of residential projects are cropping up around the new TTC subway extension in Vaughan, a huge boon for York University and its students, which have been seriously under served in both the housing and transit departments. It’s the same situation in Markham, where York University has announced plans for a satellite campus.[caption id="" align="alignnone" width="650"] One28 in Waterloo caters to students.[/caption]Condo projects in these transit oriented areas are selling out mere moments after launching, speaking to the insatiable demand for modern and well-appointed student accommodations.A new project in Waterloo, One28, is located just minutes from Wilfred Laurier University, the University of Waterloo and the UW Technology Park. The 15-storey complex is unlike other typical student-targeted developments, boasting beautifully appointed and luxurious one-bedroom and two-bedroom suites that promise a completely new experience for residents looking to live in Waterloo’s university area.Projects like One28, which are catering to younger buyers, must have an attractive amenity package, including fitness centres, yoga rooms, activity areas, communal spaces such as party rooms and rooftop lounges, and sustainable features like electric vehicle charging stations and bike storage lockers.Just a note on tax implications: if parents rent out a unit at market rates to a student family member who uses the property as his or her principal home, they can deduct tax losses from the rental activity, deduct the mortgage interest and write off all the other operating expenses, like utilities, insurance, association fees, repairs and maintenance.Whether you’re purchasing a unit for your college-bound child, or you’re a savvy investor buying a unit to rent out to students, you can’t go wrong with a condo as an investment property.Prices have been steadily rising, and many of those who can’t afford to get onto the ladder will be looking to rent for the long-term, making them ideal tenants for these investment units. Best of all, when students are the target demographic, there’s plenty of future potential in a market that continues to clamour for quality housing options.Debbie Cosic, CEO and founder of In2ition Realty, has worked in all facets of the real estate industry for over 25 years. She has sold and overseen the sale of over $15 billion worth of real estate and, with Debbie at the helm, In2ition has become one of the fastest-growing and most innovative new home and condo sales companies. In2ition has received numerous awards from the Building Industry and Land Development Association and the National Association of Home Builders.

Build Bold Inc is a unique and competitive online marketplace offering the only the best names in building and renovation supplies at great prices. We are an independent, Canadian owned & operated company, located near the Greater Toronto Area. We are constantly striving to enhance and improve our business by offering a simple and convenient online ordering model as well as an easy mobile tool for people on the go.

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